Haseeb Qureshi warns that ongoing token unlocks and strategic investor selling are eroding confidence in token markets, creating persistent downward pressure.
Macro & Markets ·
Haseeb Qureshi, Managing Partner at Dragonfly Capital, warned in an August 28 interview that ongoing token unlocks are damaging secondary-market confidence in certain tokens. According to Qureshi, many projects face sustained sell pressure stemming from multi-year unlock schedules, with some strategic investors liquidating tokens immediately upon each vesting milestone throughout a four-year period.
The repeated batch selling by early backers creates a compounding effect on market perception. When secondary-market investors observe consistent downward pressure tied to predictable unlock events, they become reluctant to accumulate positions, Qureshi noted. This dynamic can entrench a narrative that a token is fundamentally destined to decline.
What remains unclear is which specific tokens or projects Qureshi identified as most affected, or whether he outlined potential structural solutions—such as longer vesting periods, lock-ups with no immediate sale rights, or incentive alignment mechanisms—to address the unlock erosion dynamic in token markets.